EURONAV INVESTOR PRESENTATION MAY 2020
FORWARD LOOKING STATEMENTS Matters discussed in this presentation may constitute forward-looking statements under U.S. federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect the Company’s current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. All statements, other than statements of historical facts, that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, including, without limitation, the delivery of vessels, the outlook for tanker shipping rates, general industry conditions future operating results of the Company’s vessels, capital expenditures, expansion and growth opportunities, bank borrowings, financing activities and other such matters, are forward-looking statements. Although the Company believes that its expectations stated in this presentation are based on reasonable assumptions, actual results may differ from those projected in the forward-looking statements. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their obligations to us, the strength of the world economies and currencies, general market conditions, including changes in tanker vessel charter hire rates and vessel values, changes in demand for tankers, changes in our vessel operating expenses, including dry-docking, crewing and insurance costs, or actions taken by regulatory authorities, ability of customers of our pools to perform their obligations under charter contracts on a timely basis, potential liability from future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists. We undertake no obligation to publicly update or revise any forward looking statement contained in this presentation, whether as a result of new information, future events or otherwise, except as required by law. In light of the risks, uncertainties and assumptions, the forward looking events discussed in this presentation might not occur, and our actual results could differ materially from those anticipated in these forward-looking statements. 2
EURONAV – WHO WE ARE EURONAV – WHO WE ARE The world’s largest, independent quoted crude tanker platform 46 VLCC incl. 4 N/B 25 Suezmax* International company – internationally connected 2% 16% 23% 24% Headquarters in Antwerp Av Age 45% Av Age 15% 7.3 Yrs 11.1 Yrs 29% 46% Euronav offices 0-5 yrs 6-10 yrs 11-14 yrs 15+ yrs 0-5 yrs 6-10 yrs 11-14 yrs 15+ yrs Partnerships 2 FSO* 2 ULCC Mix of time charter and spot exposure for the rest of 2020 19% Fixed days Spot days 81% * Includes JV 3
EURONAV STRATEGY – SHAREHOLDER FOCUS Repayment schedule and RCF reductions Shareholder returns since 2014 Leverage: USD 3.77 DPS • 39.5% book value since 2015 445 600 Millions • 42% post dividend $1.035bn dividend payments for 2h 347 500 2019 & Q1 2020 345 paid since 2004 $m net Income, Dividend & Buy back $17.76 p/s 270 400 226 245 187 172 300 123 145 119 77 45 200 32 23 45 7 3 100 -9 -55 -50 0 -155 -138 Reductions Repayments Balloon to be refinanced Bond Maturity Net Income Dividend Share Buy Back Source: Bloomberg Source: Euronav 4 * Includes proposed 29c 78c final dividend 2019 & Q1 2020
EURONAV STRATEGY – LIQUIDITY FOCUS +$270m 4x VLCC DELIVERY Q4 20 Q1 21 5
EURONAV OPERATIONAL LEVERAGE WITH CONTRACTUAL INCOME SUPPORT Each $5,000 uplift in both VLCC and Suezmax rates improves net revenue and EBITDA by $108mm $1,188 $540 $324 $108 BASE +$5,000 +$15,000 +$25,000 +$55,000 per day per day per day per day VLCC TCE rates $25,000 $30,000 $40,000 $50,000 $80,000 Suezmax TCE rates $20,000 $25,000 $35,000 $45,000 $75,000 + Long term TC contract to 2024 FSO contract until 2022 Commercial TC relationships 6
HIGHLIGHTS Q1 2020 VLCC 80000 70000 • Strong underlying tanker dynamics drive record quarter Q1 60000 • Robust freight market improved by record contango price structure & 20 storage 50000 • Very strong start to Q2 USD/day 40000 • Q1 2020 and Final 2019 dividends to be paid in June Dividends to total USD 1.10 per share Q1 30000 P&L 19 20000 • Outlook – B/E Q2 : VLCC 71% fixed at around 95k$ per day Q2 : Suezmax 57% fixed at around 65.4k$ per day 10000 0 In USD per day First quarter Suezmax First quarter 2020 2019 70000 VLCC Average spot rate * 60000 72,750 35,195 Q1 50000 Average time charter rate 20 37,000 27, 630 40000 USD/day SUEZMAX 30000 Average spot rate* 59,250 27,380 P&L Q1 Average time charter rate 20000 B/E 19 30,250 32,680 10000 *includes all spot related revenues (including profit sharing) 0 7
FINANCIAL HIGHLIGHTS – INCOME 1 (in $ million) First quarter 2020 First quarter 2019 KEY KPIs Revenue 416.7 232.6 • Revenues : 417 M$ Other operating income 3.3 2.0 • EBITDA : 316 M$ Voyage expenses and commissions (32.7) (37.6) • Net income : 225 M$ Vessel operating expenses (53.9) (54.4) Charter hire expenses (0.7) - General and administrative expenses (16.4) (19.7) 2 Net gain (loss) on disposal of tangible assets 8.3 (0.1) P&L Breakeven Depreciation (82.3) (83.9) • Net finance expenses (21.2) (23.8) VLCC : 28.9 $/day Share of profit (loss) of equity accounted investees 5.2 3.9 • Suezmax : 26.4 $/day Result before taxation 226.2 19.1 • TCE Increase of $5.000 results in 27 Tax benefit (expense) (0.6) 0.5 M$ more EBITDA/ Net Profit (loss) for the period 225.6 19.5 income per quarter Attributable to: Owners of the company 225.6 19.5 result 3 Fuel procurement project Information per share: (in USD per share) First quarter 2020 First quarter 2019 • 17.5 M$ savings Weighted average number of shares (basic) * 215.078.497 217.447.311 realized in Q1 2020 Result after taxation 1.05 0.09 or 5 k$/day impact Result after taxation exc. capital gains 0.09 1.01 on VLCC rate 8
FINANCIAL HIGHLIGHTS – BALANCE SHEET BALANCE SHEET HIGHLIGHTS 1 Mar-20 Dec-19 Leverage (in $ million) Cash 312.2 297.0 39.5% leverage to book value Restricted cash 0.0 0.0 Other current assets 499.8 505.3 42% leverage to book value Long term after dividend payment assets: Newbuildings 100.5 0.0 Vessels 3,095.6 3,177.3 2 Liquidity Other long-term assets 180.0 185.3 Total assets 4,188.1 4,164.8 $1.05 bn of available of which: Current liabilities 347.7 316.1 • Cash: $312.2m Long term debt 1,292.2 1,523.7 • Revolving Credit facilities: $748m Other long-term liabilities 14.8 13.1 Equity 2,533.4 2,311.9 Total liabilities and stockholders' equity 4,188.1 4,164.8 9
CAPITAL ALLOCATION AT EURONAV Debt Repayment Dividends Buy Backs Fleet Equity & Bonds Growth/Renewal Mandatory FY 2019 0.29c Bonds $100m paid debt repayment Q1 2020 0.81c $1m Euronav toward 4x VLCC Q1 2020 Total: $1.10c 7.5% bond resale purchases = $28m* Payable June 20 repurchased at 85 Reduction of 2020 YTD now trading Outstanding involuntary or forced RCF in Q1 Dividend yield above par capex $270m motivated by profit part of logistical chain =$69m* storage due to Covid- 11%* of which opportunity from in crude oil supply Equity 19 >$220m from contango price $1.2bn returned repurchases bank financing Restrictions, congestion, structure *Annual debt repayment since 2004 optional is $ 62m while annual supply chain issues RCF reduction is $263m *based on $10 share price 10
FLEET DEPLOYMENT ACTIVE FLEET MANAGEMENT Purchase of 4x VLCC resales Sale of 2x Suezmaxes & 1x VLCC below market price above market price TI Hellas 108 MOA $38.3m Finesse 45 106 $21.8m 22 40 Value of 17 & 19 year old Suezmaxes $m 104 20 Value of VLCC resale $m 35 102 18 30 100 Cap 16 98 Diamant 25 4x VLCC @ $93m $20.8m 96 14 20 94 12 15 92 10 10 90 17 year old Suezmax 19 year old Suezmax 15 year old VLCC Source: Clarksons, Euronav 11
FLEET DEPLOYMENT - 2020 Management have “locked” in Split between some longer time charters Spot & Fixed whilst retaining large spot exposure 20 18 19% % of Euronav fleet fixed in time charter 16 14 12 10 8 6 81% 4 2 0 Q4 19 Q1 20 Q2-Q4 20 Fixed days Q1 2020 to end 2020 12
IMO 2020 & FUEL STRATEGY Fuel benefit $17.5m 600 • Marked-to-market of 500 inventory onboard OCEANIA is -$56m Compliant 0.5% bunker fuel per ton (end of quarter) 400 • No write-down necessary as we have not used the fuel. 300 Situation will be assessed quarter after quarter 200 • Fuel Oil project benefits in Q1= 100 $17.5m 0 Compliant 0.5% bunker fuel Euronav entry cost Source: Bloomberg 13
CURRENT MARKET HIGHLIGHTS Storage has further capacity for substantial impact 1800 105 1600 100 IEA oil demand & production m bbls Cumulative inventory build m bbls 1400 95 EIA estimate onshore storage capacity 1200 90 1000 800 85 600 80 400 75 200 0 70 Cumulative inventory build IEA Oil Production IEA Oil Demand Source: Bloomberg. IEA, EIA, Broker reports 14
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